Financial Data and Key Metrics Changes - Organic net sales decreased by 1.3% compared to the previous year, aligning with expectations, while international growth was 2% driven by both price and volume gains [10][48] - Adjusted gross margin rate decreased by 60 basis points but increased approximately 80 basis points in constant currency, exceeding expectations [49] - Adjusted operating income was $27 million, down from approximately $36 million in the previous year [50] - GAAP diluted net earnings per share were a loss of $0.04 compared to earnings of $0.09 in the first quarter of fiscal 2024 [51] Business Line Data and Key Metrics Changes - Wet shave organic net sales were down 1.3%, with international wet shave growing 3% due to price and volume gains [37] - Sun and skincare organic net sales increased approximately 5%, driven by double-digit growth in skin and grooming [39] - Grooming organic net sales increased by 13%, with Cremo brand achieving 20% organic net sales growth [40] - Femcare organic net sales were down approximately 12%, primarily due to the pads business [41] Market Data and Key Metrics Changes - International markets represented 40% of global business, with strong performance in sun care in Australia and Mexico [17] - The U.S. wet shave and fem care categories remain highly competitive and promotional, with no significant signs of purchasing hesitancy in international markets [15] - Consumption in the U.S. sun care category increased by about 1.6%, led by increased e-commerce sales [39] Company Strategy and Development Direction - The company is focused on operational performance, disciplined investments, and managing costs to drive growth [11] - A commitment to a consumer-centric, locally driven new product development model is emphasized, with a focus on innovation [18] - The company aims to maintain brand investments despite external challenges, ensuring continued support for brand activation [92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation of the business and the resilience of consumer sentiment [12][14] - The macro environment remains challenging, particularly due to currency fluctuations, but the company expects to deliver within previously provided outlook ranges [11][55] - Management anticipates sequential improvement in North American results and continued strength in international markets [104] Other Important Information - The company reported net cash used by operating activities of $115.6 million for the quarter, compared to $72.9 million in the prior year [53] - Share repurchases totaled $30 million, and a cash dividend of $0.15 per share was declared for the first quarter [54] Q&A Session Summary Question: Concerns about femcare sales and brand consolidation - Management acknowledged challenges in the femcare category, particularly with pads, but noted progress in transitioning consumers to the Carefree brand [63][64] Question: Context on businesses with negative performance - Management indicated that improvements are expected in the second half of the year as they lap previous supply chain issues [71][72] Question: Impact of FX on pricing strategies - Management confirmed that while FX headwinds are significant, they are evaluating pricing strategies but will not cut brand investments [89][92] Question: Performance of Billy Body and national expansion plans - Management expressed confidence in the Billy brand's performance and its national expansion, particularly with strong retailer support [135][138]

Core Insights - Edgewell Personal Care (EPC) reported a revenue of $478.4 million for the quarter ended December 2024, reflecting a decrease of 2.2% year-over-year [1] - The earnings per share (EPS) for the quarter was $0.07, down from $0.24 in the same quarter last year, indicating a significant decline [1] - The reported revenue was below the Zacks Consensus Estimate of $480.06 million by 0.35%, and the EPS fell short of the consensus estimate of $0.13 by 46.15% [1] Financial Performance Metrics - Net Sales in Feminine Care were $63.30 million, which is 11.8% lower than the year-ago quarter and below the average estimate of $69.21 million [4] - Net Sales in Wet Shave reached $294.50 million, slightly below the estimated $295.40 million, representing a 2.4% decline year-over-year [4] - Net Sales in Sun and Skin Care amounted to $120.60 million, exceeding the average estimate of $115.41 million, and showing a year-over-year increase of 4.5% [4] Stock Performance - Over the past month, shares of Edgewell Personal have returned +0.3%, compared to a +2.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - Net sales for the first quarter of fiscal 2025 decreased by $10.5 million, or 2.1%, to $478.4 million compared to the prior year quarter [104]. - Organic net sales decreased by $6.5 million, or 1.3%, with international markets growing by 2.0% driven by price and volume gains [104]. - Net (loss) earnings for the first quarter of fiscal 2025 were $(2.1) million, compared to $4.8 million in the prior year quarter [104]. - Adjusted net earnings for the first quarter of fiscal 2025 were $3.3 million, down from $12.0 million in the prior year quarter [104]. - Diluted net (loss) earnings per share were $(0.04) compared to $0.09 in the prior year quarter [104]. - Gross profit for the first quarter of fiscal 2025 was $191.6 million, a decrease of $6.1 million, or 3.1%, from the prior year quarter [107]. - Gross margin as a percentage of net sales decreased by 30 basis points to 40.1%, impacted by approximately 140 basis points of negative foreign currency [107]. - Adjusted gross margin as a percentage of net sales also decreased by 60 basis points to 40.1% due to increased promotional levels and core inflation [107]. Sales Performance by Segment - Organic sales in North America declined by 3.9%, primarily due to decreases in Wet Shave and Feminine Care [104]. - Wet Shave net sales decreased by $7.2 million, or 2.4%, to $294.5 million, with a 1.1% unfavorable currency impact [119]. - Sun and Skin Care net sales increased by $5.2 million, or 4.5%, to $120.6 million, with organic growth of 5.1% [121]. - Feminine Care net sales fell by $8.5 million, or 11.8%, to $63.3 million, with organic sales down 11.7% [124]. Expenses and Costs - SG&A expenses were $102.9 million, or 21.5% of net sales, in Q1 fiscal 2025, compared to $103.3 million, or 21.1% in the prior year [108]. - Advertising and sales promotion expenses increased by $2.1 million, or 4.4%, to $50.3 million, representing 10.5% of net sales, up from 9.9% in the prior year [109]. - R&D expenses rose to $13.9 million, an increase of $0.6 million, or 4.5%, accounting for 2.9% of net sales, compared to 2.7% in the prior year [110]. Debt and Financing - Interest expense associated with debt decreased by $1.0 million, or 5.1%, to $18.8 million due to a lower overall debt balance [113]. - Total borrowings increased to $1,476.2 million as of December 31, 2024, from $1,308.5 million at the end of September 2024 [131]. - Net cash provided by financing activities was $109.9 million in Q1 fiscal 2025, up from $69.8 million in the prior year period [138]. - Net borrowings under the Revolving Credit Facility were $165.0 million in Q1 fiscal 2025, compared to $91.0 million in the prior year period [138]. - As of December 31, 2024, outstanding borrowings under the Revolving Credit Facility were $199.0 million [143]. - Future minimum repayments of debt include $750.0 million in fiscal 2028 and $500.0 million in fiscal 2029 [143]. - Assuming a one-percent increase in interest rates, annual interest expense on variable-rate debt instruments would increase by approximately $2.3 million [148]. Cash Flow and Dividends - Cash flow used for operating activities was $115.6 million in Q1 fiscal 2025, up from $72.9 million in the prior year, driven by changes in net working capital [136]. - Dividend payments totaled $7.9 million in Q1 fiscal 2025, an increase from $7.6 million in the prior year period [138]. - Dividends declared during the three months ended December 31, 2024, totaled $7.1 million [142]. - A quarterly cash dividend of $0.15 per common share was declared for Q1 fiscal 2025, payable on April 9, 2025 [141]. - Share repurchases amounted to $30.3 million for 0.8 million shares in Q1 fiscal 2025, compared to $15.0 million in the prior year period [139]. Taxation - The effective tax rate for Q1 fiscal 2025 was (21.7)%, compared to 20.1% in the prior year, with an adjusted rate of 43.6% [115]. Currency Impact - The unfavorable impact from currency movements on net sales was $4.0 million, or 0.8% [106]. - As of December 31, 2024, the company had no open derivative or hedging instruments for future purchases of raw materials or commodities [148].

Core Insights - Edgewell Personal Care (EPC) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.13 per share, and down from $0.24 per share a year ago, representing an earnings surprise of -46.15% [1] - The company posted revenues of $478.4 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.35% and down from $488.9 million year-over-year [2] - Edgewell Personal has underperformed the market, with shares losing about 6% since the beginning of the year compared to the S&P 500's gain of 2.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $605.77 million, and for the current fiscal year, it is $3.19 on revenues of $2.28 billion [7] - The estimate revisions trend for Edgewell Personal is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Edgewell Personal belongs, is currently in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Edgewell's stock performance [5]

Financial Performance - Net sales for Q1 2025 were $478.4 million, a decrease of 2.1% year-over-year, with organic net sales down 1.3%[5]. - GAAP diluted EPS was $(0.04), compared to $0.09 in the prior year quarter, while adjusted EPS was $0.07, reflecting a $0.17 unfavorable impact from currency movements[5][15]. - Gross profit decreased to $191.6 million, with a gross margin of 40.1%, down 30 basis points from the prior year, impacted by approximately 140 basis points of negative foreign currency[8]. - Operating income decreased to $20.3 million from $26.1 million, indicating a decline of 22.2% year-over-year[37]. - The company reported a net loss of $2.1 million, compared to net earnings of $4.8 million in the prior year, resulting in a diluted loss per share of $0.04[37]. - Total adjusted non-GAAP income for Q1 2025 was $46.4 million, a decrease of 22.3% compared to Q1 2024[51]. - Adjusted EBITDA for Q1 2025 is projected to be approximately $356 - $368 million, down from $57.2 million in Q1 2024[57]. Market Performance - International markets saw a 2.0% growth, driven by price and volume gains, while North America organic sales declined by 3.9%[7]. - Organic net sales for the Feminine Care segment decreased by 11.7% in Q1 2025[50]. - GAAP reported net sales for Q1 2025 decreased by 2.1% to $478.4 million compared to Q1 2024[50]. Shareholder Returns - The company returned $38 million to shareholders through share repurchases of $30 million and dividends of $8 million in Q1 2025[5]. - The Board declared a cash dividend of $0.15 per common share for Q1 2025, payable on April 9, 2025[18]. Future Outlook - Full-year adjusted EPS is now expected to be in the range of $3.15 to $3.35, reflecting increased anticipated negative foreign currency changes[22]. - Organic net sales for the full fiscal year are projected to grow between 1% to 3%, with currency expected to negatively impact reported net sales by 160 basis points[23]. - Adjusted EBITDA is expected to be towards the lower end of the range of $356 to $368 million, including an estimated $23 million unfavorable impact from foreign currency changes[23]. - Adjusted EPS outlook for fiscal 2025 is projected to be between $3.15 - $3.35, with GAAP EPS estimated at $2.54 - $2.74[55]. - The effective tax rate for adjusted earnings is projected to be approximately 22.8% for fiscal 2025[55]. Cash Flow and Debt - The company ended Q1 2025 with $176 million in cash and a net debt leverage ratio of 3.8x[5]. - Cash and cash equivalents at the end of the period were $175.5 million, down from $209.1 million at the beginning of the period[42]. - Free cash flow conversion was negative, with net cash used for operating activities amounting to $115.6 million[42]. - Long-term debt increased to $1,440.6 million from $1,275.0 million, reflecting a rise in leverage[39]. - Net debt increased to $1,292.3 million as of December 31, 2024, up from $1,090.4 million at the end of September 2024[53]. Operational Challenges - The company experienced a decrease in inventories, which rose to $501.6 million from $477.3 million, indicating potential supply chain challenges[39]. - The company incurred restructuring and repositioning costs of approximately $4.2 million in Q1 2025[54]. - The company plans to continue focusing on organic growth and improving operational efficiency despite current financial challenges[32]. Segment Performance - Total segment profit for the three segments was $46.4 million, down from $59.7 million, with Wet Shave segment profit decreasing to $46.6 million from $53.7 million[46]. - Segment profit for the Wet Shave category decreased by 13.2% to $46.6 million in Q1 2025[51].

Core Insights - Edgewell Personal Care Company reported a decrease in net sales by 2.1% to $478.4 million for the first fiscal quarter of 2025, with organic net sales down 1.3% [1][5][13] - The company updated its full-year outlook, reflecting the impact of foreign currency changes, with GAAP EPS expected to range from $2.54 to $2.74 [1][19][21] Financial Performance - Gross profit for the quarter was $191.6 million, down from $197.7 million in the prior year, with a gross margin of 40.1%, a decrease of 30 basis points [6][10] - Adjusted EBITDA was reported at $45.9 million, down from $57.2 million in the prior year, impacted by an unfavorable currency effect of $11.2 million [14][39] - The company recorded a net loss of $2.1 million or $0.04 per diluted share, compared to a profit of $4.8 million or $0.09 per diluted share in the prior year [13][39] Segment Performance - Wet Shave segment net sales decreased by $7.2 million or 2.4%, while organic net sales decreased by $4.0 million or 1.3% [16][41] - Sun and Skin Care segment net sales increased by $5.2 million or 4.5%, with organic net sales up by $5.9 million or 5.1% [17][41] - Feminine Care segment net sales decreased by $8.5 million or 11.8%, with organic segment profit down by 53.4% [18][41] Cost and Expenses - Advertising and sales promotion expenses increased to $50.3 million, representing 10.5% of net sales, up from 9.9% in the prior year [7] - Selling, general and administrative expenses were $102.9 million, or 21.5% of net sales, slightly up from 21.1% in the prior year [8] - The company incurred restructuring and repositioning expenses of $4.2 million during the quarter [9] Cash Flow and Capital Allocation - The company ended the quarter with $176 million in cash and a net debt leverage ratio of 3.8x [13] - During the first quarter, Edgewell returned $38 million to shareholders through share repurchases and dividends [15] Outlook - The company expects organic net sales growth in the range of 1% to 3% for fiscal 2025, with adjusted EPS anticipated to be towards the lower end of $3.15 to $3.35 [21][45] - Adjusted EBITDA is projected to be in the range of $356 to $368 million, reflecting increased anticipated negative foreign currency changes [21][46]

Core Viewpoint - Analysts forecast a significant decline in Edgewell Personal Care's quarterly earnings and revenues, indicating potential challenges for the company in the upcoming financial report [1]. Financial Performance Estimates - The expected earnings per share (EPS) for Edgewell Personal Care is $0.13, reflecting a year-over-year decline of 45.8% [1]. - Anticipated revenues are projected to be $480.06 million, which represents a decrease of 1.8% compared to the same quarter last year [1]. Earnings Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts predict 'Net Sales- Feminine Care' to reach $69.21 million, indicating a decline of 3.6% from the prior-year quarter [5]. - 'Net Sales- Wet Shave' is expected to be $295.40 million, reflecting a decrease of 2.1% year-over-year [5]. - The consensus for 'Net Sales- Sun and Skin Care' is projected at $115.41 million, suggesting no change compared to the previous year [5]. Market Performance - Over the past month, Edgewell Personal shares have returned -1.6%, contrasting with the Zacks S&P 500 composite's increase of +1.7% [5]. - With a Zacks Rank of 3 (Hold), Edgewell Personal is expected to perform in line with the overall market in the near future [5].

Financial Results Announcement - Edgewell Personal Care Company will report its financial results for the first quarter of fiscal year 2025 before the market opens on February 10, 2025 [1] - An investor conference call will be held on the same day at 8:00 a.m. Eastern Time to discuss the results [1] Access to Webcast - Interested parties can access a live webcast of the conference call through the company's website under the "Investors" and "News and Events" tabs [2] - A replay of the webcast will also be available for those unable to participate live [2] Company Overview - Edgewell is a leading pure-play consumer products company with a diversified portfolio of established brand names including Schick®, Wilkinson Sword®, Playtex®, and Banana Boat® [3] - The company operates in over 50 markets globally, including the U.S., Canada, Mexico, Germany, Japan, the U.K., and Australia, employing approximately 6,700 people worldwide [3]

Core Viewpoint - The article discusses the investment strategy of selecting stocks based on their price-to-earnings (P/E) ratios, emphasizing that both low and rising P/E stocks can yield strong returns [1][2]. Group 1: P/E Ratio Insights - A low P/E ratio suggests that a stock's market price does not reflect its earnings potential, indicating growth opportunities [1]. - Rising P/E ratios can also indicate strong demand for a stock as earnings expectations increase, leading to higher stock prices [3][4]. - Stocks can experience P/E ratio increases of over 100% from their breakout points, presenting significant investment opportunities if identified early [5]. Group 2: Stock Screening Criteria - The article outlines specific criteria for selecting stocks with increasing P/E ratios, including: - Current year EPS growth estimates should be greater than or equal to the previous year's actual growth [7]. - Price changes over shorter timeframes should exceed those over longer timeframes, indicating consistent price increases [7][8]. - A minimum 20% price increase from the breakout point is preferred, but should not exceed 100% to avoid potential reversals [8]. Group 3: Selected Stocks - The screening process narrowed down potential stocks to 53, with notable mentions including: - Constellation Brands (Zacks Rank 2) with an average four-quarter earnings surprise of 5.30% [9][10]. - Edgewell Personal Care (Zacks Rank 2) with an average four-quarter earnings surprise of 86.79% [10]. - Rent the Runway (Zacks Rank 2) with an average four-quarter earnings surprise of 9.20% [10]. - Medpace (Zacks Rank 2) with an average four-quarter earnings surprise of 14.68% [11]. - Canoo (Zacks Rank 2) with an average four-quarter earnings surprise of 14.76% [11].

Core Insights - The article emphasizes the importance of value investing and highlights Edgewell Personal Care (EPC) as a strong candidate for value investors due to its favorable financial metrics [2][4][7] Company Overview - Edgewell Personal Care (EPC) has a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating strong potential for value investors [4][7] - The stock has a P/E ratio of 9.86, significantly lower than the industry average of 21.05, suggesting it may be undervalued [4] - EPC's Forward P/E has fluctuated between 9.86 and 14.03 over the past year, with a median of 12.55, indicating a stable valuation range [4] Valuation Metrics - The P/S ratio for EPC is 0.69, compared to the industry average of 0.87, further supporting the notion of undervaluation [5] - EPC's P/CF ratio stands at 8.59, well below the industry average of 15.10, which highlights its strong cash flow outlook [6] - Over the past year, EPC's P/CF has ranged from 8.27 to 10.23, with a median of 9.40, indicating consistent cash flow performance [6] Investment Outlook - The combination of EPC's strong value metrics and positive earnings outlook positions it as an attractive investment opportunity for value-focused investors [7]